How much do you love CNBC right now if you got in on the Alibaba IPO?
The shares have been distributed to some 0.1%ers and giant hedge funds and now they have CNBC running a 24-hour hype machine so they can dump the stocks on the public and cash in on a one-day 20% gain — at least.
They bought the shares at $68 and I suspect the shares will open somewhere around $80 but who knows how the technology will work at the New York Stock Exchange after the Facebook fiasco proved that massive IPOs are tough to up and running. It will probably take until 10:30 am for the first trades.
Here’s the playbook: Whatever it opens at (so long as it runs smoothly) add $10 and that’s the time to sell.